Online purchases using bitcoins (BTC), Visa and other retail applications are rapidly declining in the first quarter of 2020. Given that many people around the world are quarantined in order to prevent the spread of COVID-19, one would expect that there will be an increase in online purchases and deliveries. However, with rising unemployment and an uncertain economic future, consumers want to save money, not spend it.
The number of daily BTC transactions has fallen by about 100,000 since the beginning of March. The last level was so low during the “crypto winter”, after the price of the main cryptocurrency fell to about $ 3,000 in December 2018.
Shortly before the spread of COVID-19 in many countries, the Bitcoin network celebrated half a billion common transactions, and this event indicated the widespread adoption of cryptography for everyday purchases. But recent events have nullified success.
Market analyst Mati Greenspan noted that: “people just more indecisively spend their bitcoins in this difficult time for everyone.”
Visa and the digital world
The cryptocurrency cards Visa also testify to the deplorable state of the market. Until recently, they could pay for a cup of coffee, train travel, groceries in the store. However, recently the payment system announced the possibility of partial blocking. This measure does not allow consumers to personally conduct Visa cards in restaurants, entertainment venues and perform other routine operations.
Payment apps aren’t used often
Applications that support cryptocurrency report lower-than-expected revenue and profit. The owners of some large programs announced a 25% reduction in gross payments. This forces us to seek new solutions and modify proposals.
Whether this is due to the coronavirus epidemic or the massive decline in demand, there is another explanation – it is not yet known. How the situation will develop in the future – time will tell.